General lending criteria
In this section we cover:
Age
| Minimum age | Maximum age | |
|---|---|---|
| Experienced Landlord applications at 65% LTV or less | 21 | No maximum age |
| Experienced Landlord applications over 65% LTV | 70 at application | |
| First Time Landlord applications |
For maximum age on joint applications:
- We’ll use the age of the eldest applicant.
- There’s no maximum age for a First Time Landlord, when applying with an Experienced Landlord at 65% LTV or less.
Loan Purpose
- Purchase or remortgage in England, Wales and mainland Scotland
- Remortgages acceptable after the property has been owned and let for a minimum of six months
- Raising capital for non-business purposes including for deposit/purchase of a Buy to Let property, will be considered
- Raising capital for non-structural home improvements will be considered
- Remortgage with no capital raising may require proof of the current mortgage balance e.g. the last mortgage or redemption statement
Remortgaging existing residential properties
All applicants who are remortgaging their existing residential property as a Buy to Let must choose from the Let to Buy product range.
If your client is remortgaging their current residential property as a Buy to Let with The Mortgage Works, they can apply for their onward residential mortgage with Nationwide.
Our dedicated Let to Buy product range offers cashback, in addition to the free valuation that comes as standard with all The Mortgage Works Let to Buy products.
This joint proposition is only available through intermediaries. For details on how to submit cases for simultaneous The Mortgage Works and NFI applications, please read our Let to Buy processing guide.
Further Advances and Green Further Advances
- To visit our dedicated page on further advances, click here
- If your client would like to borrow more money to improve their property’s energy efficiency, a Green Further Advance mortgage will give them a lower initial interest rate than our standard Further Advance mortgages. Read more about Green Further Advances.
Offer Validity
All mortgage offers are valid for 6 months from the date of the first offer.
In addition, there is a 15 day grace period from the date of the offer expiry in order to complete. You don’t need to contact us, this is automatically applied.
New Build Offer Extensions
If you’re purchasing a New Build property and your mortgage offer is due to expire, you can apply for an offer extension of 45 days. This is inclusive of the automatic 15 day grace period.
To request a New Build offer extension, please email us at TMW.Applications@themortgageworks.co.uk detailing the account number, customer name and confirmation that there have been no material changes to the application. You should only contact us if the original offer is within 30 days of expiry.
To help us process your request, please submit your request no later than 15 days before the offer is due to expire. If you know your client will be unable to complete within the extended offer period, please complete a new application as no further extensions will be available.
Please be aware that you can't apply for an extension when the offer has expired.
Capital repayment allowance
- Your client can make lump sum or regular overpayments of up to 10% of the initial mortgage balance in each 12 month period from the anniversary of completion, without having to pay any early repayment charges. This isn't available if the whole loan is being repaid or security released
- Assets held by the customer for repayment of the mortgage are not acceptable where it is denominated in a currency other than pounds sterling (GBP).
Tenancy agreements
- Accepted in the form of an Assured Shorthold Tenancy Agreement (Short Assured Tenancy and Private Residential Tenancy (PRT) in Scotland) for a period of up to thirty six months*, all tenancy agreements are subject to assessment by the conveyancer acting on behalf of the client to ensure adherence with UK Finance guidelines. (*We will accept tenancies in a PRT form in Scotland and the 36-month period will not apply to those tenancies).
- Multiple tenancy agreements for a single property are acceptable for all applications, regardless of whether a Standard Buy to Let (up to a maximum of 4 tenants) or House in Multiple Occupation (HMO).
- Purchase applications where existing tenants will remain in the property are accepted, subject to a new tenancy agreement being signed on completion or the conveyancer confirms the benefit of the tenancy agreement is transferrable to the borrower as a successor in title to the original landlord
- Evidence of rental payments and a copy of the tenancy agreement may be requested to support non-standard tenancies
- Non-Assured Shorthold Tenancy Agreement applications (Local authority/Housing Association Tenancy, Corporate Tenancies and private individuals where annual rent exceeds £100k) also considered up to thirty six months
- Corporate lets are considered for use by the company’s employees where the company employs more than 1,000 staff and is based in the UK
- Tenancy agreements paid in cash are generally acceptable if supported by evidence of rental payments
- We won't lend to an applicant if they have a family member renting the property.
- Premium lease agreements (tenancies where a proportion of the rent is paid upfront) considered subject to the following LTV limits. Please contact us pre-application.
| Payment Frequency | Maximum LTV |
|---|---|
| Up to and including 3 months in advance | 80% |
| More than 3 months up to and including 6 months in advance | 65% |
| More than 6 months up to and including 12 months in advance | 50% |
Change of security address
For changes to the security address during the application process, a new application will need to be submitted. Products and criteria at time of re-submission will apply.
Portability
Accepted. Applies when applicant simultaneously completes a mortgage for the same or greater amount keeping the same interest rate for that portion of the new mortgage without incurring an early repayment charge. Subject to meeting the company's lending criteria at the time of application.
Private sales
Private sales can be considered subject to the following:
- Confirmation as to how the applicant sourced the property
- Private sales are acceptable but we would expect there to be an immediate link between the applicant and the vendor e.g. work colleague/friend/neighbour
- Inter-family sales are unacceptable, this includes in-laws, cousins, ex-partners.
- Properties must be purchased at full market value
- Please let us know if there are any incentives
- Properties being purchased for more than 10% below the market value will not be considered
- This doesn’t include properties purchased from a recognised developer and the discount/incentive can be evidenced.
- Evidence of Deposit will be required on all applications.
- We won't accept applications where the vendor will continue to reside in the property after completion.
- Applications in a limited company name purchasing from one of the directors and/or shareholders aren't considered private sales.
- Properties sourced due to proximity of an existing Buy to Let (BTL or residential are potentially acceptable, however, please consider our property concentration limits before applying).
- We won't accept private sale applications if the vendor is a Limited Company (except for New Builds).
- All cases will be subject to full underwrite and plausibility review.
Sale and rent back
It is not permitted for the vendor to remain as a tenant in the property or to retain an interest in the property.
Property Investment Clubs / Companies
Applications to purchase properties sourced via Property Investment Clubs/Companies are not accepted. These are typically businesses which offer to buy a property quickly from a seller, and then sells it on to another buyer.
Property
All Buy to Let properties must be used for residential purposes only and be in a lettable condition, to be determined by the valuer.
Properties not owned in personal name(s)
- Applicants purchasing/transferring a property not owned in personal name(s) are accepted providing they fall within one of the following categories:
- Local Authority/Housing Association owned properties
- Properties where the owner is a lender listed in the UK Finance handbook
Properties owned by limited companies
- Properties owned by limited companies where the purchase is an open market transaction and the applicant has no links to the vendor
- No additional borrowing or increase in LTV will be permitted for existing The Mortgage Works Limited Company accounts
Second charge
New applications with existing second charges are not accepted (unless repaid as part of the transaction). Consent to second charges post-completion considered on a case by case basis. This will be subject to criteria at the time of application, including rental cover assessment and LTV limits (currently 50% LTV before adding second charge).
Maximum loan per property
| Product/Customer type | LTV | Maximum loan* |
|---|---|---|
| Buy to Let | 50% | £1,500,000 |
| 70% | £1,000,000 | |
| 75% | £750,000 | |
| 80%** | £350,000 | |
| First Time Landlords | 50% | £750,000 |
| 70% | £500,000 | |
| 80%** | £350,000 | |
| Let to Buy | 70% | £500,000 |
| 80%** | £350,000 | |
| Houses in Multiple Occupation | 65% | £750,000 |
| 75% | £500,000 |
* Maximum loan on Green Further Advance products is £15,000.
**Over 75% LTV only available on properties with an EPC rating of C or above at application.
Maximum overall exposure per application
| Total BTL borrowing with Nationwide Group (including new loan) | Max LTV on new property |
|---|---|
| Up to £500,000 | 80% |
| £500,001 - £750,000 | 75% |
| £750,001 - £1,000,000 | 70% |
| £1,000,001 - £1,500,000 | 65% |
| £1,500,001 - £5,000,000 | 60% |
Minimum loan
- £25,001 (unless otherwise stated); minimum property value £50,000.
- £2,500 for Further Advance applications.
Applicant details
Applies to all products, unless otherwise stated
Applicants
- Up to two applicants accepted per application
- First Time Buyers considered when accompanied by an existing property owner (First Time or experienced landlord)
- Buy to Let Guarantors not considered
- The mortgage introducer cannot also be the applicant
- Vendor can't be a family member of the applicant
- Regulated Buy to Lets (where the property will be occupied by the borrower or a member of the borrower's immediate family, now or in the future) are not accepted
- We won't be able to consider applicants who are bankrupt, have been declared bankrupt in the last four years or had a property repossessed in the last six years.
Identification requirements for new customers
To find out what ID proofs we need to see for all new mortgage customers, see our list of acceptable proofs of name and address.
Applicant definitions and acceptable combinations
- First Time Buyer (FTB)*: An applicant who has not owned and occupied their own home for the last six months and has not owned and let a Buy to Let property for the last six months. Applications will be considered, subject to additional underwriting.
- The FTB must be accompanied by a current homeowner or Experienced Landlord
- Examples of scenarios which may impact acceptance of the application include:
- The FTB is unable to prove that they can support the mortgage from their own income
- The deposit is wholly gifted by the 2nd applicant / other party (no deposit from own resources, unless gifted by partner)
- The FTB lives in a property of similar value (rented or with parents)
- The FTB is not purchasing with spouse / partner
- First Time Landlord (FTL): An applicant who has owned and occupied their own home for at least the last six months, but has not owned and let a Buy to Let property for the last six months.
- First Time Landlords remortgaging a second property are not accepted. This includes inherited properties not yet in the applicant’s name.
- The loan has to be used to buy a new Buy to Let property only. We’ll need evidence of your client’s deposit for all applications – see our ‘Source of deposit’ information to see what deposit types we accept, and what proofs need to be provided.
- Maximum age 70 at application (unless a joint application with an Experienced Landlord and below 65% LTV).
- The maximum LTV we’ll consider for a First Time Landlord is 80%.**
- Experienced Landlord (EXPL): An applicant who has owned and let a Buy to Let property for at least the last six months (they may or may not own and occupy their own home).
- Consumer Buy to Let (CBTL): An applicant with no other let properties wishing to obtain a mortgage on a property that has either been inherited or has previously been occupied by the borrower or related person at any time.
**Over 75% LTV only available on properties with an EPC rating of C or above at application.
| Applicant definitions | Buy to let Property | ||
|---|---|---|---|
| 6 months and over | Up to 6 months | ||
| Residential Property | 6 months and over | Experienced Landlord | First Time Landlord |
| Up to 6 months | Experienced Landlord | First Time Buyer* | |
| Applicant combinations accepted | Applicant 1 | |||
|---|---|---|---|---|
| First Time Buyer | First Time Landlord | Experienced Landlord | ||
| Applicant 2 | First Time Buyer* | No | Yes | Yes |
| First Time Landlord | Yes | Yes | Yes | |
| Experienced Landlord | Yes | Yes | Yes | |
| N/A | No | Yes | Yes | |
Residency
- UK residents only.
- Applicants with a previous address abroad in the last three years are not accepted. For BFPO addresses, please contact us to check if this is accepted.
LTV restrictions may apply.
Applicants who work or live outside of the UK for all of the year at the time of application will not be accepted. However, exceptions can be made for applicants who work or live outside of the UK for part of the year, subject to underwriting assessment. The maximum loan to value may be restricted to 70%.
To find out what ID proofs we need to see for all new mortgage customers, see our list of acceptable proofs of name and address.
Foreign nationals
Applications before 1 July 2021
Foreign nationals must:
- be a resident in the UK for at least three years prior to application
- have a UK bank account
- have permanent right to reside (exceptions can be considered for applicants without permanent rights to reside, subject to full underwrite).
LTV restrictions may apply.
Applicants who work or live outside of the UK for all of the year at the time of application will not be accepted. However, exceptions can be made for applicants who work or live outside of the UK for part of the year, subject to underwriting assessment. The maximum loan to value may be restricted to 70%.
Applications from 1 July 2021
Foreign nationals must:
- be a resident in the UK for at least three years prior to application
- have a UK bank account.
Any applicant without permanent right to reside must be an owner occupier verified by a land registry search.
Applicants who work or live outside of the UK for all of the year at the time of application are not acceptable. However, exceptions can be made for applicants who work or live outside of the UK for part of the year, subject to underwriting assessment. The maximum loan to value may be restricted to 70%.
Republic of Ireland (ROI) Nationals
ROI Nationals can live and work in the UK without time limits and will be treated as UK Nationals.
Non-UK / ROI Nationals
- The maximum LTV is 65% where applicants don't hold indefinite leave to remain/settled status. Exceptions to this LTV will be considered for Further Advance applications where there is work required to maintain the property.
- The 65% LTV limitation doesn't apply if one of the applicants is a UK/ROI national or holds indefinite leave to remain/settled status.
- Where an applicant doesn’t have indefinite leave to remain/settled status, and has pre settled status or a points based visa, they must have a minimum of 2 years and 6 months remaining at the time of uploading the proof.
- Deposit must come from the applicants own resources.
To find out what ID proofs we need to see for all new mortgage customers, see our list of acceptable proofs of name and address.